During 2021, Pepe Guardio purchases the following property for use in his calendar year-endmanufacturing business:Manufacturing equipment (7 year)Office furnitureOffice computerItemPassenger automobile (used 85 percent for business)WarehouseDate AcquiredJune 2September 15November 18May 31July 23BuildingLandCost$ 50,0008,0002,00055,000170,000135,000Pepe uses the accelerated depreciation method under MACRS, if available, and does not make theelection to expense and elects out of bonus depreciation. Use Form 4562 to report Pepe's depreciationexpense for 2021.

Pepe uses the accelerated depreciation method under MACRS, if available, and does not make the election to expense and elects out of bonus depreciation. Use Form 4562 to report Pepe's depreciation expense for 2021.

Pepe uses the accelerated depreciation method under MACRS, if available, and does not make the election to expense and elects out of bonus depreciation. Use Form 4562 to report Pepe's depreciation expense for 2021.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

During 2021, Pepe Guardio purchases the following property for use in his calendar year-end
manufacturing business:
Manufacturing equipment (7 year)
Office furniture
Office computer
Item
Passenger automobile (used 85 percent for business)
Warehouse
Date Acquired
June 2
September 15
November 18
May 31
July 23
Building
Land
Cost
$ 50,000
8,000
2,000
55,000
170,000
135,000
Pepe uses the accelerated depreciation method under MACRS, if available, and does not make the
election to expense and elects out of bonus depreciation. Use Form 4562 to report Pepe's depreciation
expense for 2021.

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